Webpage - http://www.homeritzcorp.com/
Company
Profile
HOMERIZ is an integral
designer, manufacture and exporter of a complete range of home furniture.
1) Customer Information
:
HOMERIZ customers can
be divided into the following geographical information base on 2016 Annual
Report:
i)
Asia and Pacific - 54.42 %
ii)
Americas and European Countries – 41.49
%
iii)
Africa and Middle East – 3.10 %
iv)
Malaysia – 0.99%
As from the annual
report 2016 only 1 % of the 2016 revenue are from the Malaysia’s customer.
Hence the weakening of Ringgit Malaysia will benefit HOMERIZ.
HOMERIZ consists of two
(2) major customers as follows:
i)
Customer A – 12.64 %
ii)
Customer B – 10.19 %
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PROS:
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è Able to benefit from the weakening
of Ringgit Malaysia as 99% of the revenue are from country outside Malaysia
and denominated in US Dollar.
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CONS:
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è
HOMERIZ
consists of two major customers which contributed to 22.83 % of the total
revenue.
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2) Factories:
Base on Mr Chua Fen
Fatt, managing director told to the Edge Financial Daily on the earlier of the year, HOMERIZ operates six factories located in Muar,
Johor.
Financial
Statement
From the annual report
2016, there is goodwill of RM 478,506. These goodwill is tested for impairment annually.
The 2016 discount rate for cash flow projection of is 8.10 % and growth rate of
is 6.5 %.
The trade receivables
of HOMERIZ had reduce from RM 8,622,706 to RM 3,715,977 while the revenue had
increase from 146,418,585 to RM 157,566,985 hence the receivable turnover ratio had reduces from 0.055 to 0.024. These will result the days of saleoutstanding to reduce from 20 days to 9 days. Besides that the trade receivable had reduce
from 25 % to 17 %.
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PROS:
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è Days of Sales Outstanding had
reduced from 20 days (2015) to 9 days (2016)
è Trade receivable past due had
reduce from 25 % (2015) to 17 % (2016)
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CONS:
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è
RM 478,506 of goodwill.
Dividend
HOMERIZ had pay
dividend constantly throughout the year. For the past 5 years (2012 – 2016)
HOMERIZ had pay an average dividend RM
0.037 which is around 4% dividend yield.
Warrant
Base on 2016 annual
report there are still 49,990,000 warrant remaining. The warrant had exercise
price of RM 0.92 with the exercise ration of 1:1. The warrant had an maturity date
0f 09 July 2020.
Summary of Stock Reviews
http://ivkls.blogspot.my/2017/07/stock-review-homeriz-5160-homeritz.html |
